The article considers the mechanism of state financial support for the modernization of infrastructure facilities. It is noted that technological backwardness and a high level of depreciation of public utility infrastructure requires direct involvement of the state in the reconstruction and modernization of communal facilities within the framework of state project financing. The article covers the main spheres, directions and forms of financial support for reconstruction and modernization of communal facilities. The coordinator of financial support is the state corporation - the Fund for Assistance in Reforming Housing and Communal Services, whose participation will improve the quality of projects, achieve return on investment and reduce the growth of tariffs for utilities. It is noted that to reduce the burden on state, regional and local budgets, it is necessary to attract extrabudgetary funds using public-private partnership mechanisms.